abrdn Emerging Markets Sustainable Leaders Fund will be reorganized

TheShadow

https://www.sec.gov/Archives/edgar/data/1413594/000110465924034878/a24-8908_1497.htm

497 1 a24-8908_1497.htm 497
abrdn Funds
(the "Trust")

abrdn Emerging Markets Sustainable Leaders Fund (the "Fund")

Supplement dated March 15, 2024 to the Fund's
Summary Prospectus, Prospectus and Statement of Additional Information (the "SAI"),
each dated February 29, 2024, as supplemented to date

This Supplement updates certain information contained in the Summary Prospectus, Prospectus and SAI for the Fund, a series of the Trust, dated February 29, 2024.

On March 13, 2024, the Board of Trustees of the Trust approved an Agreement and Plan of Reorganization relating to the reorganization (the "Reorganization") of the Fund into the abrdn Emerging Markets ex-China Fund (the "Acquiring Fund"), a series of the Trust.

The Fund's investment adviser, abrdn Inc. ("abrdn"), proposed the Reorganization, in part, because of the Fund's decrease in asset size and increased distribution opportunities available to the Acquiring Fund. abrdn also serves as investment adviser to the Acquiring Fund.

The Reorganization does not require approval by shareholders of the Fund. A combined information statement and prospectus describing the proposed Reorganization in more detail will be mailed to shareholders of the Fund prior to the Reorganization. In the Reorganization, each shareholder of the Fund will become a shareholder of the Acquiring Fund and will receive, on a tax-free basis, shares of the Acquiring Fund with the same aggregate net asset value as their shares of the Fund. Shareholders of each class of the Fund will receive each corresponding class's shares in the Acquiring Fund. A Fund shareholder who does not wish to become a shareholder of the Acquiring Fund may redeem shares of the Fund at any time prior to the Reorganization.

It is expected that the Reorganization will be completed in the second quarter of 2024.

Please retain this Supplement for future reference.

chang

I recall a time when ABEMX was not only a 5* fund but the undisputed champion of EM funds. Just goes to show that actively managed OEFs rarely stay at the top forever.

Sven

… of the Fund into the abrdn Emerging Markets ex-China Fund (the "Acquiring Fund"), a series of the Trust.

As the geopolitical friction rises between China and the west, many managers ask the question of whether China is investible from investor’s perspective. Additionally, China’s economy has not fully recovered since their second wave of COVID pandemic. And their +30 % weighing in major EM indices adds to their underperformance.

Other mutual funds have already offer EM funds excluding China, iShares also made several ETFs excluding China such as EMXC.

ProtonAnalyst33

Sven said:

… of the Fund into the abrdn Emerging Markets ex-China Fund (the "Acquiring Fund"), a series of the Trust.

As the geopolitical friction rises between China and the west, many managers ask the question of whether China is investible from investor’s perspective. Additionally, China’s economy has not fully recovered since their second wave of COVID pandemic. And their +30 % weighing in major EM indices adds to their underperformance.

Other mutual funds have already offer EM funds excluding China, iShares also made several ETFs excluding China such as EMXC.

Agree with the geopolitical tensions, but from what I see - i don't see a ton of advisors choosing EM ex china funds nor clients asking for that. That's a level of granularity I don't know if people care about? There are 15+ EM ex china funds on the market and none of them are sizable with what looks liek flows continuing to passive EM (with china) funds.

I do wonder if this EM ex China is a real thing or just a sign of the times and will be irrelevant in 5 years.

chang

When China gets hot again, EM-ex-China funds will disappear faster than a rat up a drainpipe. I wouldn’t say they’re a “fad” but I don’t see the point. I’ve placed a fairly small EM bet with a couple of targeted investments but I don’t see any advantage in avoiding China; in fact, more likely I’d lean the other way.

yogibearbull

EM ex-China was in response to Fed TSP move to shift its I Fund from broad MSCI EAFE to something ex-China/HK, and that is now MSCI ACWI ex-China/HK.
So, a reality is that such ex-China/HK indexes have been developed after some huffing and puffing. Whether this commercially catches on, $78 billion TSP I Fund won't care.
A few years ago, Asia ex-Japan indexes were developed for commercial reasons when Japan just couldn't get up. Let us see how they will do in the current Japanese market run to new all-time highs (in yen; still ways to go in $s).
https://www.govexec.com/pay-benefits/2023/11/tsp-board-oks-new-international-fund-index-time-without-china/392049/
https://www.tsp.gov/plan-news/2024-02-05-I-Fund-benchmark-index-change-in-2024/

sma3

Unless you can stand volatility, I would avoid China for now. Investing in a country without the rule of law and where one man can decide to take over entire industries is a risky proposition. That is unlikely to change in the near future although Xi has probably learned a lesson the hard way since he threw Ma in jail.

The unknown debt situation,overbuild CRE ( you think the US is bad?) and collapsing property companies are not good signs. It will take several years before they sort this out and they may never.

What if Xi decides he needs a nice little war to divert the public's attention from his mismanagement?

TheShadow

update:

https://www.sec.gov/Archives/edgar/data/1413594/000110465924044129/a24-8908_3497.htm

497 1 a24-8908_3497.htm 497
abrdn Funds
(the "Trust")

abrdn Emerging Markets Sustainable Leaders Fund (the "Fund")

Supplement dated April 5, 2024 to the Fund's
Summary Prospectus, Prospectus and Statement of Additional Information (the "SAI"),
each dated February 29, 2024, as supplemented to date

This Supplement updates certain information contained in the Summary Prospectus, Prospectus and SAI for the Fund, a series of the Trust, dated February 29, 2024, as supplemented to date.

On March 13, 2024, the Board of Trustees of the Trust approved an Agreement and Plan of Reorganization relating to the reorganization (the "Reorganization") of the Fund into the abrdn Emerging Markets ex-China Fund (the "Acquiring Fund"), a series of the Trust. The Reorganization does not require approval by shareholders of the Fund. The Reorganization is anticipated to occur after the close of business on or about June 21, 2024 (the "Closing Date").

The Fund's investment adviser, abrdn Inc. ("abrdn"), proposed the Reorganization, in part, because of the Fund's decrease in asset size and increased distribution opportunities available to the Acquiring Fund. abrdn also serves as investment adviser to the Acquiring Fund.

A combined information statement and prospectus describing the proposed Reorganization in more detail will be mailed to shareholders of the Fund prior to the anticipated Closing Date. In the Reorganization, each shareholder of the Fund will become a shareholder of the Acquiring Fund and will receive, on a tax-free basis, shares of the Acquiring Fund with the same aggregate net asset value as their shares of the Fund. Shareholders of each class of the Fund will receive each corresponding class's shares in the Acquiring Fund. A Fund shareholder who does not wish to become a shareholder of the Acquiring Fund may redeem shares of the Fund at any time prior to the Reorganization.

In connection with the pending Reorganization, effective after market close on April 12, 2024, shares of the Fund will no longer be available for purchase by new investors. In addition, the Fund will depart from its stated investment objective and policies on or about June 12, 2024 because the Fund will need to dispose of any securities that are not transferrable or cannot be held by the Acquiring Fund. During this time, the Fund will hold larger amounts of uninvested cash than is customary leading up to the Closing Date, and there will be times when the Fund is not fully invested in accordance with its investment objective and strategies during this transition period, which may cause the Fund to forego appreciation in value of portfolio investments, if any.

The pending Reorganization of the Fund may be terminated and/or abandoned at any time before the Closing Date by action of the Board of Trustees of the Trust.

Please retain this Supplement for future reference.